Cost savings stack up at UPS

In North America, Expense Reduction Analysts has delivered major savings of up to 40 percent for UPS Supply Chain Solutions, a leading provider of logistics and distribution services to major manufacturers globally. UPS asked Expense Reduction Analysts to review several expense categories including warehouse and office consumables costs and waste management expenditure. The company operates in a very competitive marketplace and as a supply chain management specialist, it is vital that UPS is seen by its customers to be a diligent manager of its own supplier costs.

Expense Reduction Analysts associates Anil Nanda and John Mathers conducted an initial expense review and found savings of up to 10 per cent on office consumables and 40 percent on warehouse consumables. When the team came to look at UPS' waste management costs it found that waste management was split between eight different providers whose contracts were due to expire shortly. Expense Reduction Analysts conducted a thorough investigation into the services provided and selected one competitive supplier who not only offered a reasonable fixed price but was also able to take over the contracts from suppliers at 19 other UPS locations as and when they expired.

The supplier also offered UPS a single date for renewal of all the contracts. Expense Reduction Analysts' investigations reduced UPS' waste management costs by 32 percent and the new single source supplier offered an additional benefit for UPS as the company reviews its expansion plans. Commissioning new locations at very short notice would be necessary. UPS is now well equipped to tender this business on the renewal date of the current contract as it has only one contract to manage.

UPS implemented Expense Reduction Analysts' suggestions, ensuring savings were maximized by appointing a single point of contact, Alice Mark, supervisor, administration services at UPS, who liaised with all company's bases and ensured they were adopting Expense Reduction Analysts' recommendations. "Expense Reduction Analysts was wonderful," says Alice Mark. "We just don't have these skills in-house and we would never have been able to enjoy the savings had it not been for Expense Reduction Analysts."

As a result of the successful project, UPS is currently considering using Expense Reduction Analysts' services for other categories such as packaging and energy management. Your success story is waiting to be written. Get started lowering costs for your company.

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